Correlation Between Eastroc Beverage and Jiahe Foods
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By analyzing existing cross correlation between Eastroc Beverage Group and Jiahe Foods Industry, you can compare the effects of market volatilities on Eastroc Beverage and Jiahe Foods and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eastroc Beverage with a short position of Jiahe Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastroc Beverage and Jiahe Foods.
Diversification Opportunities for Eastroc Beverage and Jiahe Foods
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eastroc and Jiahe is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eastroc Beverage Group and Jiahe Foods Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiahe Foods Industry and Eastroc Beverage is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eastroc Beverage Group are associated (or correlated) with Jiahe Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiahe Foods Industry has no effect on the direction of Eastroc Beverage i.e., Eastroc Beverage and Jiahe Foods go up and down completely randomly.
Pair Corralation between Eastroc Beverage and Jiahe Foods
Assuming the 90 days trading horizon Eastroc Beverage Group is expected to generate 0.67 times more return on investment than Jiahe Foods. However, Eastroc Beverage Group is 1.49 times less risky than Jiahe Foods. It trades about 0.13 of its potential returns per unit of risk. Jiahe Foods Industry is currently generating about 0.0 per unit of risk. If you would invest 13,597 in Eastroc Beverage Group on September 14, 2024 and sell it today you would earn a total of 11,530 from holding Eastroc Beverage Group or generate 84.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Eastroc Beverage Group vs. Jiahe Foods Industry
Performance |
| Timeline |
| Eastroc Beverage |
| Jiahe Foods Industry |
Eastroc Beverage and Jiahe Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastroc Beverage and Jiahe Foods
The main advantage of trading using opposite Eastroc Beverage and Jiahe Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastroc Beverage position performs unexpectedly, Jiahe Foods can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jiahe Foods will offset losses from the drop in Jiahe Foods' long position.| Eastroc Beverage vs. Jilin Jlu Communication | Eastroc Beverage vs. Kuang Chi Technologies | Eastroc Beverage vs. Guangzhou Seagull Kitchen | Eastroc Beverage vs. Anhui Deli Household |
| Jiahe Foods vs. Nanjing Putian Telecommunications | Jiahe Foods vs. Tianjin Realty Development | Jiahe Foods vs. Kangyue Technology Co | Jiahe Foods vs. Shenzhen Hifuture Electric |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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